Infrastructural capital

Infrastructural capital refers to any physical means of production or means of protection beyond that which can be gathered or found directly in nature, i.e. beyond natural capital and that which is not considered as "fluid capital". It may include tools, clothing, shelter, irrigation systems, dams, roads, boats, ports, factories or any physical improvements made to nature. This term can overlap with the notion of internal improvements and public works.

In macro-economics the term "infrastructure" usually refers to the added-value of a nation-state relative to the raw natural capital of its ecoregions, e.g. dams, roads, ports, canals, sewers, border posts, etc. - although it can also be used to describe firm-specific infrastructure such as factories, private roads, capital equipment, and other such assets.

The more generic term physical capital is sometimes used to refer to any combination of either infrastructural capital and natural capital -- recognizing that often an infrastructural improvement, e.g. a dam or road, becomes impossible to differentiate from the natural ecology within which it is embedded. Although it is confusing to consider personal property carried on the individual human body part of an "infrastructure", it is also contrary to refer to joint products of nature and man as being "manufactured" or "built" rather than as being "grown" or "developed", e.g. vines or other plants which grow on a manmade trellis. As both infrastructural and natural capital serve as means of production and means of protection from the elements, macro-economists rarely differentiate the two in their analysis.

However, from a public policy point of view, infrastructural capital is prone to more obvious and significant breakdowns and is usually a cost center.

ee also

*Five CapitalsPortal|Sustainable development|Sustainable development.svg


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Capital asset — has two related meanings in the fields of accounting and financial economics. In accounting, a capital asset is an asset that is recorded on a balance sheet as capital that is, property that creates more property, e.g. a factory that creates… …   Wikipedia

  • Capital (economics) — In economics, capital or capital goods or real capital refers to items of extensive value. The term can also be applied to the amount of wealth a person controls or is capable of controlling.Capital goods may be acquired with money or financial… …   Wikipedia

  • Capital intensity — is the term in economics for the amount of fixed or real capital present in relation to other factors of production, especially labor. At the level of either a production process or the aggregate economy, it may be estimated by the capital/labor… …   Wikipedia

  • Natural capital — Bachalpsee in the Swiss Alps; generally mountainous areas are less affected by human activity …   Wikipedia

  • Physical capital — In general physical capital refers to any non human asset made by humans and then used in production. Often, it refers to economic capital in some ambiguous combination of infrastructural capital and natural capital. As these are combined in… …   Wikipedia

  • Financial capital — is money used by entrepreneurs and businesses to buy what they need to make their products or provide their services. Financial capital vs. real capitalFinancial capital refers to the funds provided by lenders (and investors) to businesses to… …   Wikipedia

  • Instructional capital — is a term used in educational administration after the 1960s, to reflect capital resulting from investment in producing learning materials.Some have objected to this phrasing, which is an elaboration of referring to training as human capital,… …   Wikipedia

  • Intellectual capital — is a term with various definitions in different theories of management and economics. Accordingly, its only truly neutral definition is as a debate over economic intangibles . Ambiguous combinations of human capital, instructional capital and… …   Wikipedia

  • Ecovillage — Ecovillages are intended to be socially, economically and ecologically sustainable intentional communities. Some aim for a population of 50 150 individuals because this size is considered to be the maximum social network according to findings… …   Wikipedia

  • Rise of Rome — The rise of Rome to dominate the overt politics of Europe, North Africa and the Near East completely from the 1st century BC to the 4th century AD, is the subject of a great deal of analysis by historians, military strategists, political… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.